On 8 February 2019, Argentina has published resolution 50/2019 of 7 February 2019 in the official gazette updating the compensatory interest rate and punitive interest rate established in articles 37 and 52 of Law No. 11,683 and the Customs Code (Law No. 22,415 and its amendments).

According to the previous rules, compensatory interest at the rate of 3% per month applies for late payment, which is increased to a 4% punitive interest rate in cases where the collection of outstanding tax debts has been referred to the courts for enforcement. This will be in effect until 28 February 2019. The resolution prescribes that it is necessary to adjust the aforementioned rates to the current economic conditions, in order to stimulate cancellation in terms of obligations and prevent delinquent taxpayers from financing their activities through non-compliance with taxes.

The compensatory interest rate and punitive interest rate will be determined quarterly. The compensatory interest rate for each quarter will be the monthly equivalent of 1.2 times the annual nominal rate for 180-day fixed term deposits at the National Bank of Argentina (Banco de la Nación Argentina) on the 20th day of the month before the start of the quarter. The punitive interest rate will be the equivalent of 1.5 times the annual nominal rate.

This resolution shall become effective as of 1 March 2019 and shall take effect from April 1, 2019. From its entry into force and until 31 March 2019, compensatory and punitive interest rates are set at 4.5% and 5.6%, respectively. The new monthly interest rates based on the National Bank rate will be published on the Argentine tax authorities’ website at the start of each quarter.